Discovery Metals Announces a $9.0 Million Private Placement With a $7.7 Million Investment From Eric Sprott
Discovery Metals Announces a $9.0 Million Private Placement With a $7.7
Million Investment From Eric Sprott
TORONTO, July 18, 2019 -- Discovery Metals Corp. (“Discovery”) (TSXV: DSV) is pleased to announce that it intends to
complete a non-brokered private placement (the “Private Placement ”) to raise $9,004,770 through the issuance of 23,216,174
common shares (“Common Shares”) at a price of $0.23 per Common Share and 15,935,000 subscription receipts
(“Subscription Receipts”) at a price of $0.23 per Subscription Receipt.
Mr. Eric Sprott has agreed to purchase 17,564,000 Common Shares of the Private Placement, which will result in him holding
19.9% of Discovery’s issued and outstanding Common Shares, post-closing of the Private Placement. In addition, Mr. Sprott
will acquire 15,935,000 Subscription Receipts which, if converted, will maintain his 19.9% interest in Discovery following the
completion of the acquisition of Levon Resources Ltd (“Levon”), as described below.
Proceeds from the Subscription Receipts will be placed in escrow on the closing of the Private Placement, to be released to
Discovery on the closing of the plan of arrangement pursuant to which Discovery intends to acquire all the issued and
outstanding common shares of Levon (the “Levon Transaction ”), as announced in a news release dated May 30, 2019. On
conversion, each Subscription Receipt will automatically convert into one Common Share, for no additional consideration. In
the event that the Levon Transaction is not completed by August 31, 2019, each Subscription Receipt will be cancelled, and
the subscription funds will be returned to the subscriber.
Taj Singh, President and CEO of Discovery commented, “We are excited to have Mr. Sprott’s support as we enter into our
next phase of growth. His investment ensures Discovery is well funded to pursue its exploration plans for its Coahuila projects
and also for the Cordero project, which will be added to Discovery’s portfolio upon closing of the Levon Transaction. For
Discovery and Levon shareholders, Mr. Sprott’s investment is a strong endorsement of the combined company’s future
business plans.”
The proceeds of the Private Placement will be used primarily to fund Discovery’s continuing exploration program at Cordero,
following the closing of the Levon Transaction, and the Coahuila projects (Puerto Rico, Minerva and Monclova). A portion of the
proceeds will be used for general working capital purposes.
Discovery anticipates that certain insiders will acquire securities in the Private Placement. To the extent such insiders
participate in the Private Placement, any such participation would be considered a “related party transaction” as defined under
Multilateral Instrument 61-101.
Discovery may pay a finder’s fee to one or more arms’ length parties who introduce Discovery to investors, in accordance with
the policies of the TSX Venture Exchange (the “Exchange”). The securities issued will be subject to a four-month-and-one-day
statutory hold period from the date of issuance. Closing of the Private Placement remains subject to Exchange approval.
About Discovery Metals
Discovery is focused on discovering and advancing high-grade polymetallic deposits in a recently assembled land package of
approximately 150,000 hectares over a large and historic mining district in Coahuila State, Mexico. The portfolio of three large-
scale, drill-ready projects and several earlier-stage prospects, all with shallow high-grade Ag-Zn-Pb mineralization, is situated
in a world-class carbonate replacement deposit belt that stretches from southeast Arizona to central Mexico. The land
holdings contain numerous historical direct-ship ore workings with several kilometers of underground development, but there
was no modern exploration or drill testing on the properties prior to the work carried out by Discovery. For further information,
please visit Discovery's website at www.dsvmetals.com.
Levon is exploring one of the world’s largest silver resources at its 100%-owned Cordero Project in Chihuahua State, Mexico.
The 37,000 hectare property covers an entire porphyry district that hosts the announced resource and numerous exploration
targets for bulk tonnage diatreme-hosted, porphyry-style, and carbonate replacement deposits. For further information please
visit Levon’s website at www.levon.com, and the news release of Discovery dated May 30, 2019 as filed on SEDAR.
For Further Information:
Discovery Metals Corp.
(416) 613-9410
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may include forward-looking statements that are subject to inherent risks and uncertainties. All statements
within this news release, other than statements of historical fact, are to be considered forward looking. Although Discovery
believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or developments may differ materially from those
described in forward-looking statements. Factors that could cause actual results to differ materially from those described in
forward-looking statements include fluctuations in market prices, including metal prices, continued availability of capital and
financing, and general economic, market or business conditions. There can be no assurances that such statements will prove
accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. There can be no assurance
that the Levon Transaction or the Private Placement will close on the announced terms. Discovery does not assume any
obligation to update any forward-looking statements except as required under applicable laws.